Calculate and File Your Payroll Tax

As an employer, you have numerous tax responsibilities, one of which is filing state and federal employee payroll tax quarterly and at the end of each taxable year. These taxes are withheld from each of your employees’ paychecks, and you must submit these withholdings regularly to the federal government. Usually, payroll taxes are calculated by subtracting statutory and voluntary payroll deductions from the employees’ gross pay to arrive at net pay for the year. Though this may sound simple, it can actually become quite confusing, especially if you are in charge of a large workforce. If the thought of filing payroll tax for your employees fills you with trepidation, the experienced and knowledgeable firm of Sarasota’s Koontz & Associates, PL can help you calculate and file these returns so you can focus on the myriad of other things you need to do.

All Forms of Payroll Tax

There are multiple forms of payroll tax that must be calculated and filed. They include:

  • Federal Income Tax – These funds must be withheld from each paycheck and deposited by the employer.
  • Social Security and Medicare Tax – These taxes are withheld from an employee’s paycheck, and the employer pays a matching amount. In 2013, the rate of Social Security and Medicare taxes increased to 6.2%.
  • Additional Medicare Tax – In 2013, the federal government approved an additional 0.9% Medicare tax for workers above a certain wage bracket. Employers are now responsible for withholding these funds.
  • Federal Unemployment (FUTA) Tax – Employers must pay an annual tax to fund state and federal unemployment programs.
  • Self-Employment Tax – Self-employment taxes are comprised of two parts: Social Security and Medicare. As a self-employed person, there may be tax deductions that can be taken. We can help you determine your eligibility for self-employment tax deductions.

In addition, employers must take into consideration voluntary payroll deductions such as health insurance, life insurance, retirement plans such as 401(k)’s, stock purchase plans, meals, uniforms, and union dues.

Calculating and Filing Payroll Tax is a Year-Round Commitment  

Employee payroll tax must be filed monthly or semi-weekly, and your business must follow schedules according to federal law. These laws and requirements can change at the beginning of every taxable year, so it is important to keep on top of the regulations for the year. Beginning in January and extending through April, there are a number of other forms such as W-2s and 1099s that you are required to file. In short, filing and keeping track of payroll tax can be a full-time job in itself, depending on the number of employees you have.

Koontz & Associates, PL Can Help with Payroll Taxes.

Jo Ann M. Koontz offers a powerful combination of in-depth knowledge of tax regulations, a firm grasp of the business world, and years of experience representing clients. To schedule a consultation, call the Sarasota office of Koontz & Associates, PL at 941-225-2615.

Jo Ann Koontz

[email protected] 941-225-2615